Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Percentage of Net Service Revenue Earned by Type of Ownership or Relationship with Operating Entity

The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity:



	Three Months Ended September 30,				Nine Months Ended September 30,
Ownership type	2018		2017		2018		2017
Wholly-owned subsidiaries	59.5	%	50.6	%	57.5	%	52.1	%
Equity joint ventures	39.5		47.5		41.3		46.1
Other	1.0		1.9		1.2		1.8
	100.0	%	100.0	%	100.0	%	100.0	%

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Adoption of the standard impacted the Company's previously reported results as follows (amounts in thousands):



	As previously reported			Adjustment for ASU 2014-09			As adjusted
	As of December 31, 2017
Condensed Consolidated Balance Sheets
Patient accounts receivable	$	161,898		$	—		$	161,898
Allowance for uncollectible accounts	23,556			(23,556		)	—
	Three Months Ended September 30, 2017
Condensed Consolidated Statements of Income:
Net service revenue	272,872			(3,194		)	269,678
Provision for bad debts	3,194			(3,194		)	—
Net income attributable to LHC Group, Inc.'s common stockholders	10,906			—			10,906
	Nine Months Ended September 30, 2017
Condensed Consolidated Statements of Income:
Net service revenue	779,700			(8,238		)	771,462
Provision for bad debts	8,238			(8,238		)	—
Net income attributable to LHC Group, Inc.'s common stockholders	31,678			—			31,678
Condensed Consolidated Statements of Cash Flows:
Provision for bad debts	8,238			(8,238		)	—
Changes in operating assets and liabilities, net of acquisitions:
Receivables	(19,569		)	8,238			(11,331		)

Percentage of Net Service Revenue Earned by Category of Payor

The following table sets forth the percentage of net service revenue earned by category of payor for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Home health:
Medicare	72.0	%	72.5	%	72.2	%	72.8	%
Medicaid	1.2		1.1		1.3		1.2
Managed Care, Commercial, and Other	26.8		26.4		26.5		26.0
	100.0	%	100.0	%	100.0	%	100.0	%
Hospice:
Medicare	88.4	%	92.1	%	90.5	%	93.0	%
Medicaid	1.0		—		0.7		0.4
Managed Care, Commercial, and Other	10.6		7.9		8.8		6.6
	100.0	%	100.0	%	100.0	%	100.0	%
Home and Community-Based Services:
Medicaid	23.8	%	22.3	%	23.4	%	19.1	%
Managed Care, Commercial, and Other	76.2		77.7		76.6		80.9
	100.0	%	100.0	%	100.0	%	100.0	%
Facility-Based Services:
Medicare	56.7	%	63.2	%	59.9	%	64.0	%
Managed Care, Commercial, and Other	43.3		36.8		40.1		36.0
	100.0	%	100.0	%	100.0	%	100.0	%
HCI:
Medicare	16.8	%	—	%	21.1	%	—	%
Medicaid	0.2		—		0.3		—
Managed Care, Commercial, and Other	83.0		—		78.6		—
	100.0	%	—	%	100.0	%	—	%

Shares Used in Computation of Basic and Diluted Per Share Information

The following table sets forth shares used in the computation of basic and diluted per share information and, with respect to the data provided for the three and nine months ended September 30, 2018, includes shares of the Company issued to former stockholders of Almost Family in connection with the Merger. See Note 3 of the Notes to Condensed Consolidated Financial Statements:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018	2017
Weighted average number of shares outstanding for basic per share calculation	30,750,227	17,740,818	26,393,337	17,704,561
Effect of dilutive potential shares:
Nonvested stock	333,588	269,704	247,437	227,139
Adjusted weighted average shares for diluted per share calculation	31,083,815	18,010,522	26,640,774	17,931,700
Anti-dilutive shares	16,470	—	58,192	137,400